New Delhi, India – India is considering revisiting tariff concessions offered to British exports, most notably Scotch whisky, if the United Kingdom does not address its concerns over tightened steel safeguard measures. This development comes as UK Secretary of State for Business and Trade, Peter Kyle, arrived in India for discussions with Commerce and Industry Minister Piyush Goyal on Tuesday, June 2, 2026.
At the heart of the brewing trade friction are Britain's proposed stricter steel import safeguards. These measures include reduced tariff-free quotas and higher duties, primarily aimed at protecting the UK's domestic steel industry. Indian officials argue that these steps could significantly undermine market access for Indian steel exports, despite both nations working towards operationalizing the India-UK Comprehensive Economic and Trade Agreement (CETA) signed previously.
India's Stance on Rebalancing the FTA
An Indian trade official stated, "The ball is now in their court. If they do not leverage the free trade agreement appropriately, we can always reconsider the concessions we offered." While India has not yet made a final decision, officials indicated a potential recalibration of concessions granted on specific British products unless London addresses the concerns surrounding steel duties. "We have to rebalance the FTA," another official added, explicitly mentioning Scotch whisky as a product that could be affected if the UK does not roll back its steel measures.
Scotch Whisky: A Key Concession
Scotch whisky was widely perceived as one of Britain's most significant gains under the India-UK CETA. The agreement stipulated that India would slash import duties on UK whisky and gin from 150% to 75% upon the pact's enforcement, with tariffs further decreasing to 40% over a 10-year period. The broader trade agreement encompasses tariff reductions across various sectors, from textiles and automobiles to alcoholic beverages, aiming to expand market access between what are the world's fifth- and sixth-largest economies.
Both countries estimate that the CETA could boost bilateral trade by an additional £25.5 billion by 2040. Kyle's meeting with Goyal focused on deepening economic cooperation and expanding bilateral trade and investment ties. However, the emerging tensions over steel safeguards are casting a shadow over the next phase of the India-UK trade relationship, highlighting the delicate balance required to ensure mutual benefit from the ambitious trade pact.